CYIL vol. 15 (2024)

CYIL 15 ȍ2024Ȏ THE INFLUENCE OF THE OECD ON EU LEGISLATION The question of how to address tax issues related to digitalization began to arise, and Action 1 of BEPS became the driving force behind new rules adopted by the EU Council in March 2021, known as “ DAC7 .” Under this new directive, 36 tax authorities of member states are required to automatically exchange information on income from digital platforms from 2023 onwards. The purpose is to prevent tax evasion, which is currently easier in the digital space, and thus increase tax fairness. The directive has already been transposed into Slovak law and became effective on 1 January 2024. 37 The European Union, however, is not stagnating in this area, and whether it is due to the upcoming European elections or not, it must be acknowledged that significant progress has been made in the field of the digital economy. In October 2023, the EU Council adopted a new directive that complements the already effective directive on administrative cooperation in the field of taxation. The novelty is primarily the reporting and automatic exchange of information on income from transactions with crypto-assets and binding tax rulings concerning the wealthiest individuals. 38 The aim of the directive is to strengthen the existing legislative framework by expanding the scope of registration and reporting obligations and overall administrative cooperation of tax administrations. According to the directive, “ The crypto-asset market has gained in importance and increased its capitalisation substantially and rapidly over the last 10 years. Crypto-assets are a digital representation of a value or of a right, which is able to be transferred and stored electronically, using distributed ledger technology or similar technology .” 39 Well-known cryptocurrencies include Bitcoin and Ether. In terms of legal force, the directive is a soft tool of the Union to unify legal regulations, and it is believed that by transposing it in various forms and approaches by different countries, cryptocurrencies and their tax aspects will be viewed differently from country to country. It is up to the member states to determine the nature and extent of penalties for non-compliance and to address their extraterritorial enforcement. Claudio Cipollini, in his article, focused on possible sanctions that member states may adopt. 40 The fact remains that cryptocurrency has been recognized as legal tender and is exempt from VAT, 41 but a more comprehensive and unified regulation is lacking. The direct connection between the adoption of this directive and the activities of the OECD can be found in the Commission’s statements, which directly mention it in their 36 Ibid. 37 Zákon, ktorým sa mení a dopĺňa zákon č. 442/2012 Z. z. o medzinárodnej pomoci a spolupráci pri správe daní v znení neskorších predpisov a ktorým sa menia a dopĺňajú niektoré zákony. [Act amending Act No. 442/2012 Coll. on international aid and cooperation in tax administration as amended later and by which they are changed and supplemented some laws]. 38 Council of the EU, 2023. Press release: Council adopts directive to boost cooperation between national taxation authorities (DAC8). (cit. 2024-03-02). Available online: https://www.consilium.europa.eu/en/press/press-releas es/2023/10/17/council-adopts-directive-to-boost-cooperation-between-national-taxation-authorities-dac8/. 39 Par. 5 Proposal for a COUNCIL DIRECTIVE amending Directive 2011/16/EU on administrative cooperation in the field of taxation COM/2022/707 final. 40 CIPOLLINI, C., 2024. DAC8 and Extraterritoriality: How to Enforce Compliance for non-EU Operators. In: EC Tax Review, 33, č. 1, 2024, pp. 19–32. Available online: https://kluwerlawonline.com/journalarticle/ EC+Tax+Review/33.1/ECTA2024003. 41 Judgment of the Court (Fifth Chamber) of 22 October 2015 Skatteverket v David Hedqvist .

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